Report Overview

India Air Conditioner Market- Industry Trends & Forecast Report 2028

The India Air Conditioner Market was worth USD 2.74 billion in 2021 and is further projected to reach USD 7.11 billion by the year 2028, growing at a CAGR of 15.2% during the forecast period (2022-2028). The market is growing at a high rate owing to factors such as changing living standards, growing middle-class income, rising spending on convenience goods along with increasing investment towards infrastructural development and construction of various residential as well as commercial facilities. Furthermore, the integration of advanced technologies such as IoT is also offering significant growth opportunities to the India Air Conditioner Market during the forecast period.

Air Conditioner - Overview

Air Conditioner is a system for maintaining and controlling the temperature, humidity, and purity of the air  indoors. This system generally removes warm air and replaces it with cool air via the refrigeration cycle. These systems are used in a wide range of commercial, residential, and industrial facilities such as homes, hotels, hospitals, schools, institutes, trains, apartments, airplanes, ships, etc. The air conditioner is a very important appliance, as it helps in maintaining indoor air quality which involves the removal of moisture, odors, and dehydration. Also, it promotes better sleep and a comfortable environment.  

India Air Conditioner Market Forecast and Trends

Growth Drivers

Improving Living Standards Fostered the Demand for Air Conditioners

The air conditioner is an energy-efficient solution, which proves to be economical as well in the long run. The rising purchasing power of consumers, changing living standards, and increasing variety of offers and discounts are influencing the demand for air conditioners. Also, the affordable facility of equated monthly installments (EMI) is increasing middle-class consumers’ in buying air conditioners.  Furthermore, the rising infrastructural development and shifting trend toward luxurious life is reinforcing the demand for air conditioners.

Expanding Integration of Advanced Technologies

The air conditioners are increasingly getting innovated and are being integrated with advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI). The integration of sensors and IoT into air conditioners is allowing consumers to attain maximum efficiency. The user can control the AC remotely using a mobile application, google assistant, and Amazon Alexa. Also, new technologies in AC are developing such as the inverter air conditioner which is the most energy-efficient. This consumes less electricity owing to variable speed compressors and is also good for the environment. This is anticipated to present lucrative growth opportunities to the India Air Conditioner Market during the forecast period (2022-2028).

Restraints

High Maintenance Cost of Air Conditioners

India is an extremely price-sensitive market and air conditioners need regular maintenance which increases the concerns among some consumers. The air conditioners’ air filters, fins, and coils should be cleaned regularly to function properly. Failure to do this can decrease the efficiency and shorten the life of AC. This leads to costly repair calls and increases the concern among consumers. All these factors restrain the growth of the India Air Conditioner Market.

Impact of COVID-19 on India Air Conditioner Market

The sudden outbreak of COVID-19 negatively impacted the growth of the Indian Air Conditioner Market. The nationwide lockdown imposed by the government to curb the virus spread restricted the manufacturing and supply of non-essential items including air conditioner equipment. Furthermore, the construction of residential, commercial, and industrial facilities were halted due to lockdown guidelines as well as lack of investment. The purchasing power of the consumers was also affected owing to the economic crisis in the country. All these factors resulted in a significant drop in the demand for air conditioners in India, impacting the overall market growth.

India Air Conditioner Market - By Product Type

Based on product type, the India Air Conditioner Market is segmented into Splits, Windows, VRF, Chillers, and Other including Cassette, Ductable Splits, etc. The Windows segment accounts for the largest market share and is mostly in higher demand among residential consumers. Since the windows air conditioner is the most widely used conditioner for single rooms and is cost-effective. This results in propelling the demand for India Air Conditioner Market during the forecast period (2022-2028).

India Air Conditioner Market - By End-User

Based on end-user, the India Air Conditioner Market is segmented into Residential, Commercial, and Industrial. The Residential segment accounts for the largest market share owing to the increasing disposable income of Indian consumers and changing lifestyles. Also, the increasing residential projects and business parks, rising rural development, and various offers as well as discounts are surging the demand for AC. However, the Commercial segment is projected to witness the highest growth rate during the forecast period owing to the rising construction of commercial facilities such as offices, shopping complexes, hotels, etc., in the country.

India Air Conditioner Market - Regional Insights

Geographically, the India Air Conditioner Market is segmented into North India, South India, East India, and West India. The West India region dominates the market owing to the most economically populated state of Maharashtra. The varying climatic conditions witnessed by states in this region such as Mumbai, Goa, and Rajasthan witness high demand for AC. This results in offering lucrative growth opportunities for the India Air Conditioner Market during the forecast period (2022-2028).  

Competitive Landscape

The leading market players in the India Air Conditioner Market are Voltas Limited, Daikin Airconditioning India Pvt. Ltd., LG Electronics India Pvt. Ltd., Blue Star Limited, Johnson Controls-Hitachi Air Conditioning India Limited, Panasonic India Private Limited, Samsung India Electronics Private Limited, Haier Appliances India Pvt. Ltd, Havells India Pvt. Ltd, Havells India Limited, Carrier Midea India Private Limited, and other prominent players.

The market is highly competitive and fragmented with the presence of various global as well as regional industry participants. The companies constantly launch new products with advanced features to gain a competitive edge over the market. Multinational corporations also invest in expanding their production capacities to meet the growing demand and boost their market penetration. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In January 2021, Panasonic aimed to double its AC business in the next 3 years to invest in domestic manufacturing in India. The company, which introduced the HU series of ACs with the recently-announced nanoeX technology, is eyeing about 35% sales growth in the segment this year on the back of pent-up demand. According to the company, nanoeX technology releases hydroxyl radicals contained in water, which are also known as "nature's detergent" that are capable of inhibiting bacteria and viruses, including 99.99% of adhered novel coronavirus.

Scope of the Report

By Product Type

• Splits
• Windows
• VRF
• Chillers
• Others include Cassette, Ductable Splits, etc.

By End-User

• Residential
• Commercial
• Industrial

By Region

• North India
• South India
• East India
• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. India Air Conditioner Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Advancement/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. India Air Conditioner Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
      2. By Volume (Thousand Units)
   2. Market Share & Forecast
      1. By Product Type
         1. Splits
         2. Windows
         3. VRF
         4. Chillers
         5. Other including Cassette, Ductable Splits, etc.
      2. By End User
         1. Residential
         2. Commercial
         3. Industrial
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. Competitive Landscape
   1. List of Key Players and their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership.)
7. Impact of Covid-19 on India Air Conditioner Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **

Voltas Limited

Daikin Airconditioning India Pvt. Ltd.

LG Electronics India Pvt. Ltd.

Blue Star Limited

Johnson Controls-Hitachi Air Conditioning India Limited

Panasonic India Private Limited

Samsung India Electronics Private Limited

Haier Appliances India Pvt. Ltd

Havells India Pvt. Ltd

Havells India Limited

Carrier Midea India Private Limited

8. 1. Other prominent players
9. Key Strategic Recommendations

*Financial information in case of non-listed companies will be provided as per availability.

**The segmentation and the companies are subjected to modifications based on in-depth secondary study for the final deliverable.

List Of Figures

Figure 1: India Air Conditioner Market Segmentation

Figure 2: India Air Conditioner Industry Value Chain Analysis

Figure 3: India Air Conditioner Market Size, By Value (USD Million), 2018-2028

Figure 4: India Air Conditioner Market Size, By Volume (Thousand Units), 2018-2028

Figure 5: India Air Conditioner Market Share (%), By Product Type, By Value, 2018-2028

Figure 6: India Air Conditioner Market Share (%), By Product Type, By Volume, 2018-2028

Figure 7: India Air Conditioner Market Share (%), By End User, By Value, 2018-2028

Figure 8: India Air Conditioner Market Share (%), By End User, By Volume, 2018-2028

Figure 9: India Air Conditioner Market Share (%), By Region, By Value, 2018-2028

Figure 10: India Air Conditioner Market Share (%), By Region, By Volume, 2018-2028

List of Tables

Table 1: India Air Conditioner Market Size, By Product Type, By Value (USD Million), 2018-2028

Table 2: India Air Conditioner Market Size, By Product Type, By Volume (Thousand Units), 2018-2028

Table 3: India Air Conditioner Market Size, By End User, By Value (USD Million), 2018-2028

Table 4: India Air Conditioner Market Size, By End User, By Volume (Thousand Units), 2018-2028

Table 5: India Air Conditioner Market Size. By Region, By Value (USD Million), 2018-2028

Table 6: India Air Conditioner Market Size. By Region, By Volume (Thousand Units), 2018-2028

Table 7         Voltas Limited Company Overview                              

Table 8         Voltas Limited Financial Overview                               

Table 9         Daikin Airconditioning India Pvt. Ltd. Company Overview                            

Table 10        Daikin Airconditioning India Pvt. Ltd. Financial Overview                             

Table 11        Blue Star Limited Company Overview                                   

Table 12        Blue Star Limited Financial Overview                                    

Table 13        Johnson Controls-Hitachi Air Conditioning India Limited Company Overview                                

Table 14        Johnson Controls-Hitachi Air Conditioning India Limited Financial Overview                                 

Table 15        Samsung India Electronics Private Limited Company Overview                               

Table 16        Samsung India Electronics Private Limited Financial Overview                                

Table 17        Havells India Pvt. Ltd Company Overview                              

Table 18        Havells India Pvt. Ltd Financial Overview                               

Table 19        Havells India Limited Company Overview                              

Table 20        Havells India Limited Financial Overview                               

Table 21        Carrier Midea India Private Limited Company Overview                               

Table 22        Carrier Midea India Private Limited Financial Overview